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House restores $320M to budget vetoed by Gov. Baker

The Lowell Sun

Updated:
10/04/2017 06:43:17 PM EDT

By Andy Metzger

State House News Service

BOSTON -- Unfazed by two consecutive years in which their budgets collapsed, the Massachusetts House on Wednesday completed votes needed to restore the $320 million that Gov. Charlie Baker vetoed from the budget in July.

The Senate so far has gone along with $40 million of House-approved overrides, with more veto reversals expected. Both branches must sign off on the spending before it is restored to the budget.

Shortly after the branches adjourned for the day, state tax collectors released a highly anticipated revenue report for September -- one of the largest collection months of the year -- that showed tax revenue exceeding expectations so far this year.

State tax revenues for the first quarter of fiscal 2018 came in $164 million higher the same period last year, a growth rate of 2.6 percent, and beat benchmarks by $124 million, or 2 percent, the Department of Revenue reported Wednesday evening. The state collected $6.349 billion from July through September, according to DOR.

The House on Wednesday restored $36 million to the fiscal 2018 budget, and the Senate took votes to override $14.9 million in gubernatorial spending vetoes that already passed through the House, according to aides in both branch's budget-writing committees.

Supermajorities in both the House and Senate allow Democrats to steamroll their Republican counterparts, who often voted with the governor but sometimes sided with their Democratic colleagues on Wednesday.

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In July Baker vetoed $320 million as he signed a $39.4 million fiscal 2018 budget, warning that without additional reforms to MassHealth the budget would fall out of balance and he would need to take corrective action. Senate Ways and Means Chairwoman Karen Spilka and House Ways and Means Chairman Jeffrey Sánchez are in agreement that the spending bill they sent the governor in July was balanced.

"I still believe it was a balanced budget," Spilka said on the Senate floor Wednesday. Ultimately, Baker has the responsibility for ensuring the budget is balanced and the authority to unilaterally cut spending if necessary.

The revenue haul in September -- the fourth biggest revenue month on the calendar -- was $135 million above benchmark and $97 million more than was collected in September 2016.

"Revenues for September exceeded the monthly benchmark, mainly driven by withholding. As a result, year-to-date revenues are now modestly above benchmark," said Revenue Commissioner Christopher Harding. "The Department has identified some one-time revenue events that helped to improve September, beyond which we see modest growth across most other tax categories in line with expectations. With just under one-quarter of FY18 revenues collected, the actual results are closely aligned with our forecast."

State budgets have fallen into turmoil in recent years as tax revenues have fallen short of levels necessary to support the spending enacted by the Legislature.

Completely wiping out the governor's vetoes could be seen as a rebuke to the Swampscott Republican, a former administration and finance secretary who presents himself as a mostly non-partisan and competent manager who works well with the Democrats who control the Legislature.

"Democrats' sole mission this legislative session has been to put taxpayers at risk. First, they sought to raise taxes on working families to fund their giant pay hikes, and now they are pushing the budget out of balance," Terry MacCormack, spokesman for the state Republican party, said in a statement. "Instead of more fiscal gamesmanship, they should promise to work with Governor Baker to control state spending; and they could start by returning their pay increases."

The governor had cut spending to a range of budgetary priorities, including palliative care for children, a suicide prevention program and a plaque at the Leo J. Martin Golf Course in Weston. Lawmakers devoted $25,000 to honor the memory of Martin, a World War II veteran and with the Senate's 30 to 7 vote on Wednesday that funding is fully restored.

Senate Republicans joined in unanimous votes Wednesday to restore funding for the Soldiers' Home in Chelsea, food assistance, and a pilot program to address postpartum depression in Holyoke, Lynn, Worcester and Boston.

The governor and others have criticized legislative budget-writers for underfunding other budgetary accounts, requiring lawmakers to pour money into public defenders' offices and sheriffs' departments midway through the year.

"We're going to be back here again addressing programs that are underfunded because we simply don't have the money," Rep. James Lyons, an Andover Republican told colleagues on the House floor Wednesday. He said the budget is based on "fuzzy math."

After returning from their summer recess, the House and Senate have devoted most of their attention to overriding the governor's vetoes, while leaders anticipate action later this fall on bills overhauling the criminal justice system and making changes to MassHealth, the biggest state program which is projected to spend $15.6 billion in fiscal 2018.

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